Is the system rigged?

Nope, no more than it has been since the beginning, no more than it will always be, no more than individuals allow it to affect them because of their own actions or inactions.

I say: The fault, dear Brutus, is not in our stars, / But in ourselves, that we are underlings.

Many people feel “the system is rigged,” but they often mean different things depending on their experiences and political views. Surveys over the past decade have consistently found that a substantial share of Americans believe the economic and political systems favor powerful interests over ordinary people.

Some of the main reasons include:

1. Wealth inequality
   • The richest households have seen their wealth grow much faster than middle- and lower-income households.
   • Many people feel that hard work no longer guarantees upward mobility.
   • I say: Hard work never guaranteed anything. You need initiative, job growth, increased value to your employers, significant extra effort and always accumulating wealth even it is only small amounts. Nothing today prevents any of that. The growth of richer households does not stop anyone else. Those households grow their wealth through risk and investment. You can too even on a modest scale.
2. Political influence of money
   • Large campaign donations, lobbying, and well-funded interest groups can give wealthy individuals and organizations greater access to elected officials.
   • This creates a perception that ordinary voters have less influence.
   • I say: There is nothing new here. That has been the case since there were politics. I lobbied and passed out campaign donation envelopes back in the 80s and 90s. The AARP, the UAW, the American Medical Association and many others have major lobbying organizations and have for decades. Some of the most politically influential figures in the past included: John D.Rockefeller (oil), Andrew Carnegie (steel) Cornelius Vanderbilt (railroads), J. P. Morgan (banking) and there were few restrictions on what they could do.
3. Different rules for different people
   • High-profile cases where wealthy or politically connected individuals appear to receive lighter consequences than ordinary citizens reinforce the belief that justice is unequal.
   • Whether or not this perception is accurate in any individual case, it shapes public opinion.
   • I say: Sometimes that’s true, like with our current president, and while it’s unfair, that doesn’t make it rigged against ordinary citizens.
4. Housing and education costs
   • Home prices, rents, college tuition, and childcare have risen much faster than wages in many parts of the country.
   • Younger generations often feel it is much harder to achieve the same standard of living their parents did.
   • I say: In some cases it may be harder, that’s a fact of life. Many times in our history things were harder than before. You adjust, you do what is necessary to reach your goals. And, yes, that might include a second job, cutting back on non necessity spending, waiting a little longer. By the way, our expectations have risen too. Nobody rigged anything.
5. Healthcare costs
   • Americans pay more for healthcare than residents of other high-income countries while still facing deductibles, copays, and insurance complexity.
   • Unexpected medical bills contribute to the feeling that the system is stacked against patients.
   • I say: A system in need of restructuring for sure, but not rigged. High premiums for many, but not all and there are ways to protect against unexpected medical bills which do not occur as often as perceived. The tradeoff is higher taxes for universal coverage and lower out of pocket costs, but many Americans don’t want that either.
6. Tax complexity
   • Many people believe the tax code contains deductions and strategies that are easier for higher-income individuals and large businesses to use.
   • Others point out that the highest-income households also pay a large share of total federal income taxes. Both facts can be true, depending on which taxes and measures are being discussed.
   • I say: Complex it can be, but not for the great majority of tax filers. Most used, most valuable deductions and especially tax credits favor the average American. 50% of tax filers have a modest effective income tax rate of 3.7%. Other taxes such as FICA and property taxes provide a direct (though deferred) benefit to the individual. The system is still progressive.
7. Economic insecurity
   • Events such as the Great Recession and the COVID-19 pandemic led some people to conclude that financial institutions and large corporations receive government support more readily than individuals.
   • I say: The question here is why? The answer is because those institutions are vital to the economy and thus important to individuals, to workers and investors (which includes Americans saving for and in retirement). All of us that are part of the economy, the society are connected in some way. You might question some of the judgments made, but it’s not rigged.
8. Slow government response
   • Problems like infrastructure, immigration, healthcare reform, and entitlement financing often remain unresolved for years despite broad public concern, leading people to believe the political system is ineffective or overly influenced by special interests.
   • I say: Government isn’t a thing, it’s people, it’s people who are accountable to other people, voting citizens. You get what you accept and vote for. Become a special interest.